First of all, if you are considering the purchase of a short sale, you will want to contact your realtor first so they can research the listing. There are several things a savvy realtor will be watching for that you might miss. That being said, here are things you can pay attention to yourself.
Some short sales are listed at a price so low that the seller’s bank will never accept. In a short sale, the bank and the seller need to agree on the amount they will settle for, meaning the loss the bank is willing to take. Also, these listings that are priced extremely low often receive multiple offers. If you want your offer accepted, it will need to be priced near the market value for the home. So if you don’t want to pay more than the low-ball price listed, you may want to skip it altogether.
It is a good idea to ask your agent to research how much money is still owed against the property, including the number of loans recorded. Some lenders are more difficult to negotiate with than others, so you will need your agent to be experienced in short sales.
Check out your short sale agent’s track record. If the agent has never actually closed a short sale, you are taking a risk working with them because they are the one who will submit the short sale package to the lender and negotiate. If you don’t want to risk the rejection of your short sale purchase then be sure to choose an agent who has closed in the past.
The package that your agent should have received from the seller should include the seller’s hardship letter, tax returns, W-2s, payroll stubs, financial statement, and bank statements. If your agent or the seller drag their feet on these mandatory documents, you may wind up waiting much longer than you want to.
Next week’s blog will continue with more advice about purchasing short sales, so be sure to check back if you have found this useful. If you are interested in new developments on Maui, explore the Lanikeha development. If you have your own search criteria you would like to use to find a property, have a look at our online real estate search tool. This was built to make your search convenient. Remember, if you have any questions not answered on our website, you can call (800) 367-5632 or email us at . We would love to assist you. Mahalo!